Mid-cer take Home Portion 19. Howe Company's balance sheet shows: Common stock, 520 par $3,000,000 Paid-in capital in excess of par 1,050,000 INSTRUCTIONS Record the following transactions using the cost method. Assume all shares originally issued at the same price, 527 cach. (a) Howe purchased 1.000 shares of its common stock at $20 a share (b) Howe retired 500 shares of treasury stock. (c) Howe sold 250 of the treasury shares at $28 a share. (d) Howe sold the remaining 250 of the treasury shares at $30 a share. 20. Pippen Corporation sold 50 shares of common stock (S20 par) and 60 shares of preferred stock (S10 par) for $7,000. The FMV of the common stock was $100 and the preferred S50.00 INSTRUCTIONS: Clearly label each situation with the method used (a)Prepare the entry to record the sale for cash; show computations. Method: (b)Assume the preferred had no readily available market price. Prepare the entry to record the sale for cash. Method: 24. ABC Company, at the end of its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $200,000 Depron tax in excess of FS (300,000) Estimated litigation expense 500,000 Taxable Income $400,000 Prepare the journal entry to record income tax expense, income tax payable and any accompanying deferred assets or liabilities. Assume a 30% tax rate